Point of View

“Support from Russian citizens has always helped us, and I’m confident that the government’s future line-up will rely on the people. We must never forget about the needs of ordinary people. We must always remember how government-level decisions influence the lives of all ordinary Russian citizens.”

"Areas near our borders face quite a few problems we must address, including the significant influx of immigrants from neighbouring countries, many of whom are not being properly registered and accommodated. Cross-border crime is also rising, and so are drug trafficking, the illegal arms trade, and poaching. These problems cannot be effectively resolved through the use of force alone. The situation can only be addressed through an integrated approach. We should begin by improving the social and economic situation in the areas and communities near our borders. We must improve their infrastructure, raise the living standards of the people living in these areas."

"In the second half of this year, our economy has started growing again; inflation is going down, and unemployment is gradually decreasing. This does not mean that anti-crisis measures are no longer necessary. Needless to say, we will continue encouraging the domestic demand, increasing the stability and reliability of the financial system, and taking measures to reduce the budget deficit and ensure macro-economic stability. Nevertheless, the tasks of strategic development are gradually moving to the fore. We are living in different economic conditions, and this reality is very important."

"New Russia had to start building a market economy and creating modern legal institutions practically from scratch, in very difficult conditions. Our partners – foreign companies which invested in Russia – did not find it easy, either. Nevertheless, I am confident that the majority of our foreign partners did not regret their choice. This is demonstrated by numerous successful projects in the Russian economy."

"Nothing has changed in the principles of building up today's economy. Competitiveness is always the first priority. If energy cooperation and Nord Stream provide for the competitiveness of the economies of Germany and Russia, if we supply relatively cheap gas to the market - because pipeline gas is always cheaper than liquefied - then this will contribute to the stability and competitiveness of the German economy. Who would refuse such an opportunity? Nobody would ever give that up. And rightly so. I hope that nobody will give it up. Today, when dealing with a unified Europe, we must be patient and obtain the necessary permits from countries the exclusive economic zones of which the pipeline system traverses. We must convince them of the project's expediency. I hope that we will be able to do this."

"Whether Nord Stream will be built or not, and I think that it will be, I'm confident of that - it's actually just a detail. Of course, it is important, but from the point of view of intergovernmental relations, it is a small detail. After all, sometime in the 1960s, we started building our gas system specifically tailored to meet the needs of consumers in the FRG. And at the time some countries put enormous pressure on the FRG to abandon these plans. But even in the middle of the Cold War, when the construction of the Berlin Wall began, the German government was conscious of its national interests, did not cave in to the pressure and saw this project through to the end. Surely, today we won't cave in to any kind of pressure in view of the clear interest of the German and Russian economies in this cooperation? In the modern world, many things will be resolved differently. Even so, interests take precedence, and applying pressure, whether military, political, economic, diplomatic or any other kind of pressure, has no prospects. Basically, that's the way it always was."

"We have established a good way to communicate directly with people. It allows us to understand their concerns, and for the State Duma, the Federal Government, and the regional governments to take these concerns into account when developing policy. All the more so since United Russia is represented in all regions, and has a majority in most regional parliaments. It is very important for party organisations to be as close as possible to their constituents. The party should not turn into a party of bureaucrats. It should primarily defend the interests of common people rather than those of civil servants."

"The decision of General Motors not to go ahead with the deal and not to sell Opel to the Magna-Sberbank consortium does not damage our interests. That is clear. That said, we were ready to support the deal. We supported Sberbank's decision to take part in the Sberbank-Magna consortium created in order to buy Opel. We gave them political support as well. In fact, several days ago, during a conversation with the German Chancellor, I reaffirmed the Russian Government's decision to provide 250 million euros in state guarantees to ease the load on the German Government and the German financial institutions. On the understanding, of course - and this was in our interests - that the plan to rescue Opel would be an investment in the Russian automobile industry, and that the plan would involve the transfer of technology. The members of the consortium worked hard with government agencies, GM, and with trade unions. The plan had been fully agreed upon. The last-minute decision to pull out of the deal does not harm our interests, but it does say something about the somewhat peculiar culture of our American partners when dealing with their partners. That is obvious."

"As for our own plans, they will not be changed. We will work with everyone, including American manufacturers. GM has a presence in the Russian Federation. We will support its activities in Russia, just as we will maintain contacts with the European manufacturers, such as our German and French partners, as well as with all those who have come to our market. For example, the Japanese producers. We have our own ambitious plans with which we will go ahead regardless, if not within this arrangement, then under some other arrangement. These plans are still alive and well, and they will continue and be completed. There is no doubt about it."

"As you know, we are in the final stages of an extensive programme to finish construction on more than 17 major bridges. Construction began in the Soviet era but was later stopped. But these are very important infrastructure facilities, and construction on them will be finished this year. We'll even exceed the quota by building one extra bridge. Today, I signed an executive order prepared by the Transport Ministry establishing bridges and roads in need of repair. This includes many facilities - in Vologda, Novaya Ladoga in the Vologda Region, the Saimaa Canal, the Krasnodar Territory in the south, St Petersburg, the Moscow Region, the Don, Volgograd, and the city of Kamensk-Shakhtinsky on the border with Ukraine."

"Operating without accidents and meeting the demands of the economy and ordinary people are the main criteria by which we must evaluate the effectiveness of an energy system. Clearly, this can be achieved by thoroughly modernising electric power stations and distribution networks, and by refurbishing obsolete facilities with reliable cutting-edge, high-capacity equipment. I believe that safety and quality must form the basis of the technical rules that regulate the generation and distribution of power. These regulations should be prepared as soon as possible."

"I would like to remind you that the Russian Federation currently holds the presidency of the Baltic Sea States Council. Just lately, several days ago, I signed off on the plan for the Russian Government's work as President of the Baltic Sea States Council. We are completing, have completed the practical work on the plan to improve the Baltic Sea environment for 2010-2012. It includes specific projects such as the building of purification facilities, including in the Kaliningrad Region."

"Import replacement is not an end in itself. Sometimes it makes more sense to operate within an international division of labour getting cheap quality products from our partners abroad. But in some cases we should of course seek to replace imports because even in the areas that seem to be far removed from defence and security matters, in the final analysis, many things connected with the defence industry cross over into the civilian market. We cannot afford to ignore that."

"Our goal is not to close the domestic market and perpetuate backward technology, but, on the contrary, to create truly competitive production facilities which put out quality consumer goods that are in demand."

"The last decade has made obvious the importance of direct government participation in the development and promotion of domestic film making, supporting film studios, and securing contracts for related organisations. We have managed not only to preserve the cinematographic personnel and industrial infrastructure, and all those present know how difficult it was to achieve this in the early and middle 1990s and the early 2000s, but we have done this, and also managed to elevate our film industry to a new level, primarily in sales revenues and in production capacity."

"We have a great cinematographic legacy. Our films traditionally receive prestigious awards at international festivals. However, our films have not yet won a mass foreign audience. In other words, we are still unable to exert in full measure economic and cultural influence, which is one of the most important and serious tasks of national film making."

"Needless to say, the financial crisis has had an adverse effect on the development of the film making infrastructure, or in simpler terms, the construction of new movie theatres and other facilities. However, the growth of box-office revenue from Russian films is a positive change. It has reached 15% in the last nine months. Other industries have been in decline, but box-office revenue has increased by 15% in the last nine months. The Government can render financial aid, help acquire equipment and build the infrastructure. It can help streamline the educational process, as we are doing at VGIK. But the Government cannot force spectators see what they are not interested in. This is what creativity is all about."

"Relations between our countries, including our political ties, regulatory agreements and economic cooperation, have been developing very well recently. Bilateral trade grew considerably last year, by over 40%. Unfortunately, it has fallen by more than 40% in the first months of the year, but there is a clear tendency for revival. The overall decline is currently less than 20%."

"We are grateful to the Danish Government for giving permission for the construction of the Nord Stream gas transmission system through Danish territorial waters and part of the Danish exclusive economic zone in the Baltic Sea. We greatly appreciate this prompt and sound decision on the part of our colleagues. It is an example of a measured, politically unbiased approach towards energy issues and energy cooperation in Europe."

"The budget for 2010 focuses on social programmes, with one of its key articles dealing with a large-scale pension reform. We all know a lot about this issue, and have discussed it a lot. Pension allocations will account for roughly 10% of the gross domestic product-an unprecedented amount that will increase pensions by an average 46% throughout the year."

"The party is facing many challenges. First, the national economy needs dynamic, post-crisis rehabilitation with an emphasis on innovation ways of driving growth-which means that Russia must overcome the effects of the crisis and launch its programmes for modernising the economy at once. We should also speed up budget, health service and education reforms, and pursue an active policy of dynamic social development."

"So-called thick or literary magazines have traditionally played a major role in Russian literary life. The writers at the meeting repeatedly brought up the idea of supporting these thick magazines. Let me point out that these magazines must be available to general readers, both directly through subscription and in our libraries."

"It is still a government priority to encourage literature and writers. Accordingly - as I understood it - you proposed a Russian Federation Government resolution that would increase the number of Russian Government awards for arts and culture from 20 to 25. Unfortunately, in previous years there were no writers among those who received awards. But this increase of five awards will enable additional support of talented writers, and these additional five awards will be given exclusively to writers. Let me remind you that a laureate receives one million roubles with his or her award. In addition, grants for creative initiatives in the arts will be doubled from 25 to 50 million roubles, which also means an increase in funding for literary projects. We will allocate the necessary funds from the federal budget for 2010."

"It is necessary to thoroughly review how efficiently Union funds allocated for joint programmes are being spent. High-tech projects remain one of our highest priorities. It is vital that we continue joint efforts to ensure a decent living and social safety net for our citizens and develop our human capital. This is why we have prepared and approved the Concept for the Union State Social Development."

"This plan has already had a positive impact on the Russian and Belarusian economies, and has encouraged trade between our two countries. There are also a lot of other means to encourage trade further. We must try our best to use the advantages that come from our two countries' integration to recover from the crisis. The official establishment of the Customs Union of Russia, Belarus and Kazakhstan on January 1, 2010 will also contribute to fulfilling this goal. We expect that it will allow us to take cooperation between Russia, Belarus, and Kazakhstan to a new level."

"It is particularly important that we both support the construction industry now and make substantial progress on housing problems. First of all, we need to be more proactive in allocating land for residential construction, in city-planning, and in resolving issues with utility networks. If we fail to do this, we are at risk of losing the momentum in residential construction that we have worked so hard to gain recently."

"We decided to continue employment programmes through 2010, and we will allocate 36 billion roubles from the federal budget for this purpose. The effectiveness of our efforts mainly depends on municipal authorities, their ability to handle the situation on-site, and their understanding of the actual state of affairs. Obviously, it will be necessary to revise the priorities for our programmes supporting the labour market, which must be done while taking into account long-term plans to modernise and diversify the economy."

"Next year's priorities must include increasing employees' professional skills, thus ensuring effective employment and creating new, highly-paid jobs. We need to pay more attention to retraining and advanced training programmes. We must also more actively support self-employment and new businesses. In addition, employment programmes must be supplemented by measures targeted to support the most vulnerable social groups, including large families, people with disabilities, seniors - everyone who has difficulty finding a new job, or is unable to find one at all."

"We will be preparing appropriate solutions at the level of the federal government, and we will develop an exhaustive list of paid services that may be offered to our citizens. An exhaustive list. Everything else must be free. All intermediaries must be eliminated, so that no organisation can come between a citizen and a government authority, and so that no organisation will extort money from our citizens."

"I think that a specific programme for improving the quality of services must be implemented in each municipality. Methods for resolving this problem - from applying unified standards and administrative regulations to establishing centres with multiple functions that operate in the "single window" mode - have been identified more than once. Other proposed measures such as using advanced electronic technologies are promising, and this is what I would like to direct your attention to."

"Relations between Cyprus and the Russian Federation are based on long-standing traditions and continue to develop successfully. The legal base for cooperation between our countries is being strengthened. Quite recently, on October 8, the Government of the Russian Federation approved a protocol for an intergovernmental agreement that would protect capital investment. I think that the ratification of this agreement by both countries will make our economic cooperation even more transparent.."

"Our foreign partners, as a rule, are very sensitive to environmental issues and conservation. I agree with them entirely. In that sense the establishment of new, state-of-the-art enterprises in Russian regions will contribute to the responsible use of natural resources, help put an end to predatory exploitation of forests, and improve the environment not only in Russia, but in the whole north-west of the European continent. And this also holds for other parts of the world, for example the Far East."

"Russia supports the Finnish initiative of holding a Baltic summit in Helsinki early next year. I believe that its decisions will strengthen environmental cooperation in the region. Let me remind you that Russia currently holds the presidency of the Helsinki Commission on the Protection of the Baltic Marine Environment. Needless to say, we are ready to render our Finnish colleagues every assistance in the context of the future forum. I would also like to tell you that the Government of the Russian Federation has decided to prepare and launch a programme to improve the Baltic Sea ecology. The programme will cover the period of 2010-2015. It is based on the measures set forth in the Helsinki Commission Action Plan."

"I would like to repeat what has already been said more than once: Russia, like any other country - and I would like to stress this point - cannot be content with merely supplying primary raw materials to the world market. I am referring to all kinds of raw materials, be they hydrocarbons, bio-resources, or timber. Like any other country, Russia is interested in using its natural riches in the most effective and rational way. This is our strategic objective. We will tackle it by transforming our economy, making it less dependent on the export of commodities, and introducing advanced, innovative technologies."

"Any country - every country - in the world wants to reduce the volume of raw materials export and to increase the volume of processing in its own territory. Russia is not doing anything unusual in this respect - it simply wants to develop the country and its economy. Is this wrong? However, I would like to say again that we are not trying to attain this goal at somebody else's expense, which is why we are acting carefully, after notifying partners about our plans. Moreover, we make concessions to them on other issues."

"The only thing we consider unacceptable is the use of diplomatic services outside the Vienna Convention. I think that is indisputable. We very much hope to see a uniform interpretation of these issues on the part of our partners."

"The partnership between Russia and Finland are a model for genuine, good neighbourly relations. This is also true of our political, business and cultural ties, especially since in 2008 Russia has again emerged as Finland's biggest foreign trading partner. The trust we have built up enables us to discuss the most complicated issues frankly and reach the best solutions for both our countries' benefit."

"It is important that in spite of the global economic crisis, the implementation of key Russian-Finnish projects is proceeding at a good pace. Although there has been some decline in the volume of trade, I am confident that in the future we will be able to turn this situation around. In this connection I would like to remind you that last year Russia emerged as the biggest trading partner of the Finnish Republic. We are committed to building up our business ties, improving their quality and stability, and developing both the traditional and new areas of economic partnership."

"Finland's authority as a major player in the world timber market is unassailable. And very importantly, it applies not only to the quantity, but also to the quality of its products. I am referring to Finland's modern technologies, the advanced processing of raw materials, and advanced environmental programmes. All these areas are extremely important for us. The experience of our Finnish partners and their advanced know-how will certainly be used in Russia. I think it is in our mutual interests to shift the focus towards joint development of the markets in third-party countries, and to concentrate our resources on creating and promoting high-tech nanotechnology and biotechnology products in the timber industry. Ultimately, the future belongs to these technologies."

"During the talks we held behind closed doors, the Finnish Prime Minister appealed to us to review the issue of duty-free birch deliveries for the Finnish timber processing industry. I believe we could expand the parameters and hence the volume of such deliveries to our partners abroad. The issue concerns the so-called birch supply balance, which is birch timber with a diameter of up to 15 cm. "

"On the whole - and I would like to draw your attention to this - there is more and more support in Europe for the diversification of energy routes. Just recently, as you know, the Danish Government has granted permission to lay the pipeline through its economic zone, for which we would like to thank that country's leadership."

"Understand that businesspeople expect me to tell them what we are going to do in the immediate future, and I will do so. But at this point I am speaking about our development strategy. We have always behaved honestly with regard to our partners. I would like to say for everyone to hear: we will not change our strategy. Any other approach would run counter to the logic of our strategic course for rebuilding our economy and - this is also very important - would undermine Russia's reputation as a reliable partner."

"I can tell you that the moratorium on the increase of unprocessed lumber prices will be extended into next year, 2010. I believe a similar decision can be taken for 2011. But we will make a decision based on our analysis of the situation on world markets. We hope that our foreign partners will use the additional breathing space judiciously - incidentally, this applies not only to foreign partners, but to our own logging industry as well - in order to expedite the implementation of their development projects and not appeal to the Russian Government to extend the moratorium year in and year out."

"The new Russian Forestry Code, which came into force in 2007, has set transparent, market-oriented rules for the industry. They are based on environmental responsibility, equal access to resources, and incentives for those who invest in advanced timber processing. Such investors will receive tracts of forested land without auction. We have simultaneously decided to phase in higher export duties for unprocessed lumber. I would like to stress that this is by no means an attempt to weaken the position of our competitors. It is a very natural and long overdue step towards a more modern and diversified economy. I am confident that such steps open up new opportunities both for us and for our traditional partners. To be fair, one cannot but notice that we have given our foreign colleagues an excellent opportunity to expand their business. In effect, we have given them direct access to the Russian market and sent them a signal: come and build your facilities, create jobs, and work."

"We do not believe that the current problems are reason enough for giving up our plans for modernisation altogether, or for abandoning our commitment to scaling down the export of raw timber. I am speaking about our development strategy."

"Germany is Russia’s leading trade and economic partner. Last year, Russia-Germany trade exceeded $60 billion. This year it will be considerably smaller because of the crisis. However, I was pleased and even surprised to learn that in January through April German investment in the Russian economy grew 36%. It is proof that our relations have been growing despite problems in the global economy and our countries' economies. Moreover, import and export between Russia and Germany is balanced, and our relations are sufficiently diversified."

"The regions formerly complained there were no federal regulatory system or established programmes and methods for such reforms. Such complaints were justified, but we cannot accept them any longer, now that all the appropriate programmes have been worked out and tested in pilot projects as part of the national priority projects."

"Now is the time to be thrifty, improve the performance of agencies funded by the government, implement new ways of financing, and remove administrative obstacles. It is the time to learn to develop on the basis of domestic resources and potential, and to implement cutting-edge technologies. You can rely on federal support for all of this-provided regions fulfil their basic social obligations toward citizens."

Ours is a socially oriented budget. It stipulates requisite allocations for the payment of benefits, pensions and wages. We are carrying out a large-scale pension reform - we have discussed this more than once and you know the main parameters of that reform. We must do everything possible to ensure the unconditional implementation of these commitments. On the other hand, the budget is also aimed at development, and so allocations to high technologies have been reaffirmed and, in some cases, increased, in particular allocations to the aerospace sector, shipbuilding and other high-tech sectors.

"A majority of the Russian regions made significant progress last year-life expectancy and birth rates grew, while death rates decreased, especially among people of working age. A majority of regional leaders managed to deal with the unfortunate situation. Timely steps prevented snowballing unemployment, and regional employment services promptly concentrated on stabilising the labour market."

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